computer and information technology services, and research and development, 2015

FIGURE 1.12 Knowledge-intensive services trade network: Professional services, computer and information technology services, and research and development, 2015

Source: Data from the Eora sector-to-country matrix, 2015. Note: Each source node represents the origin of the value added in the selected sector; each destination node represents the country exporting that added value. Only linkages worth at least US$50 million are included. The top 10 exporters are labeled.

production in GVCs. In the data-driven global economy, talent, data, and algorithms have become key ingredients for success. Although competition for these ingredients is intense, companies can also expand their value creation through collaborative ecosystems built around ICTs (Frederick, Bamber, and Cho 2018).

Famous for its car brands, Germany has solidified its leading position in the transportation equipment value chain over the past several decades (figure 1.13). The United States was the largest car manufacturer in the world until recently; Chrysler, Ford, and General Motors are known as the “Big Three” US automakers and are among the largest global auto exporters. Japan is the world’s second-largest auto exporter; its automotive industry took off in the 1970s and overtook that of the United States after the 1980s. Japan and Germany are also among the biggest rail equipment exporters. Japan launched the first class of bullet trains in 1964 and has continuously advanced its rail technology. It boasts some of the most important train manufacturers in the world, including Hitachi, Kawasaki, and Mitsubishi. Germany also plays a central role in international rail markets; Siemens and other German firms are known for their innovative capacity and intelligent traffic systems. The United States has the largest aerospace sector in the world, and it is the main supplier of both military and civilian aerospace hardware to the rest of the world.

Mexico emerged as the fourth-largest auto exporter and a major aerospace parts exporter by attracting FDI. Unlike Germany, Japan, and the United States, Mexico does not have its own world-famous car brands; instead, it developed its automotive industry by attracting foreign firms such as Chrysler, Ford, General Motors, and Volkswagen. Mexico’s aerospace exports also surged in recent years by virtue of a large influx of FDI into its aerospace sector. Aerospace exports from Mexico reached US$8.4 billion in 2019, a 17 percent increase over the previous year, and FDI in the industry is estimated to have reached US$13 billion in 2019, of which 75 percent will originate in North America and the rest in Europe (TECMA Communications 2019).